South Korea orders crypto exchanges to verify holdings every 5 minutes

Written by Amin Haqshanas, Staff WriterReviewed by Bryan O’Shea, Staff EditorSouth Korea orders crypto exchanges to verify holdings every 5 minutes8 hours agoAn inspection found slow reconciliation cycles and weak trade-halting systems across major crypto exchanges.       Listen0: 00 Cointelegraph in your social feed           South Korea has ordered all crypto exchanges to reconcile their internal ledgers with actual asset holdings every five minutes after an inspection uncovered weaknesses in internal controls. The directive was announced on Monday by the Financial Services Commission (FSC) after a meeting with top crypto exchanges and the Digital Asset Exchange Alliance (DAXA), during which they discussed the findings of an emergency inspection triggered by the Bithumb payout incident. The inspection found that three of the country’s five major exchanges were reconciling balances only once every 24 hours, limiting their ability to respond quickly to discrepancies. Systems designed to halt trading during major mismatches were also found to be insufficient, raising concerns about how exchanges would handle large-scale errors. In February, Bithumb mistakenly distributed 620,000 Bitcoin (BTC) to 249 users during a promotional event. The exchange later announced that it recovered 99.7% of the funds the same day.